Debit memo policy for ARC / BSP

The ADM serves to notify an Agent that unless there is some justification to the contrary, the Agent owes Copa Airlines the amount shown on the ADM for the reasons indicated therein.

ADM is a legitimate accounting tool for use by Copa Airlines to collect an amount or make an adjustment to the Agent transaction in respect of the issuance, re - issuance, refund and revalidation of documents.

B. Policy

Copa Airlines shall ensure that all fare rules and procedures are complied with by the Agent for Refunds requests

A handling fee for twenty percent of the value to refund (20%) shall be collected from the AMM agent for any violation or omission of the refund rules and conditions but not limited to:

Erroneous application of all refund rules.

Incorrect calculation of the refundable amount, taxes and fuel and insurance surcharges.

Under or un - recalled commission amount.

Under or non – collection of refund service fee, cancellation penalty (e.g. in case of no – show/non – user’s fee) and applicable VAT or its equivalent.

Ticket is already utilized as flown or refunded but refunded or exchanged by the Agent.

Refund of expired ticket or non – refundable ticket.

Refund rejected by processed in different form of payment.

Agent unable to process refund by missing BSPLink enhanced version.

Copa Airlines shall have the right to debit the Agent for the following:

Commissions and discounts (e.g. erroneous commission claimed by the Agent, under remittance or unauthorized use of net or use of invalid rate sheet, domestic/OAL sector not entitled to commission, etc.).

Service Charge not payment.

MPDs/MDS.

Rebooking fees, recalculation of re – issuance or re – routing.

Tour Code/Deal Code violation.

Carrier Identification Plate (CIP) violationNote: In case of plating violation where OAL fare rules require plating on OAL documents, as stated in CAT 15, the full YY – IATA fare will be charged.

Any ticketing violations as covered by the Conditions of Contract such as Notice of Government and Airport imposed taxes, fees and charges; Passenger Service Charge and Security, Fuel and Insurance Surcharge and the like as covered by various resolutions in the IATA passenger Sales Agency Agreement, IATA Ticketing Handbook, Copa Airlines’ Conditions of Carriage and Air Tariff Construction Rules.

Any violation of the refund rules and conditions but not limited to:

Erroneous application of all refund rules.

Incorrect calculation of the refundable amount, taxes and fuel and insurance surcharges.

Under or un - recalled commission amount.

Under or non – collection of refund service fee, cancellation penalty (e.g. in case of no – show/non – user’s fee) and applicable VAT or its equivalent.

Ticket is already utilized as flown or refunded but refunded or exchanged by the Agent.

Refund of expired ticket or non – refundable ticket.

Assessment of government agencies In case Copa Airlines shall be assessed by the country’s government agency for the following:

Under or non – collection of taxes (e.g. Panama Travel Tax and its equivalent to foreign countries, terminal fee, etc.).

Non – attachment of required documents for tax exemptions or reduced value of the tax.

Invalid certificate for tax exemptions or reduced value of the tax due to such certificate is already expired, delayed or with different route as specified on the ticket.

Non – compliance with any of the fare conditions attached to joint fares with other airlines and airlines partner joint fares.

Credit card chargeback

In case Copa Airlines shall be debited by the credit card company for a fraud case, a purchase rejection by the passenger or credit card misuse on a ticket issued by the agent, Copa Airlines shall charge the agent for the value of the said ticket.

Copa Airlines reserves the right to issue an ADM when abusive usage of a credit card in the name of the agent in connection with the sale of a customer.

Other violations, which include Copa Airline billing errors, discrepancies in the form of payment, conversion rate violations, unreported sale and non – payment of sales.

Various taxes to be paid to the Income Tax Department, including tax deduction at source on commission earned by the agent and any other applicable taxes.

Issuance of ADM

ADM shall be raised electronically by Copa Airlines through the Memo Manager (AMM) as follows:

For sales, within nine (9) months after the final travel date of the passenger

For refunds, within 9 months of the ARC/BSP remittance date on which the refund document was processed.

A handling fee for twenty percent of the difference receivable (20%) shall be collected from the AMM agent for every issuance of ADM. The handling fee shall be included as part of the total ADM reflected as service charge.

Any debit action initiated beyond the 9-month period shall be handled directly between Copa Airlines and the Agent through issuance of invoice.

ADM Settlement ADM must be settled within fifteen (15) days through the AMM.

ADM Dispute

The Agent shall have a maximum of fifteen (15) days to review and dispute the ADM prior submission to ARC/BSP for processing.

ADM disputed by the Agent and consequently accepted by Copa Airlines shall be cancelled through AMM and shall not be included in the billing.

In case an ADM was settled then disputed by the Agent, Copa Airlines shall issue an Agency Credit Memo (ACM) if found acceptable.

All disputed ADMs must be settled by the Copa Airlines and the Agent within sixty (60) days upon the receipt of the dispute.

Contact Information Further inquiries related to the ADM issued Copa Airlines should be sent through email to the email address reflected in the ADM. Copa Airlines reserves the right to modify and amend the ADM policy, which shall affect the airline and industry policy, at any time and it will be communicated directly in writing or through any electronic media.